In Brief
A borrower defaulted on a substantial bank loan secured by property. The bank obtained a decree and auctioned the property for Rs. 48.8 lakhs, which would recover only one-third of the outstanding dues of approximately Rs. 1.02 crores. The borrower sought installment payments. The Supreme Court partly allowed the appeal: instead of confirming the auction, it permitted the borrower to clear dues through monthly installments of Rs. 15 lakhs starting March 2016. Default on two consecutive installments would result in dismissal and reversion to normal recovery proceedings. The auction purchaser's deposit with interest would be returned upon full payment."
The lawyer headnote and full judgment text are available to registered users.